Insurance cost decrease for 99% of insured members

One of the many benefits of Australia’s super scheme is being able to pay for insurance cover directly from your super savings. For many AustralianSuper members, the cost of insurance has reduced. Find out how this might affect you.

AustralianSuper provides most members with insurance cover when they open their super account1. This cover provides a basic level of protection if you die or become ill or injured and can’t work.

We offer Death, Total & Permanent Disablement (TPD) and Income Protection cover. These provide a minimum amount of cover and peace of mind for changing needs as you get older.

Every year we work with our insurance provider (TAL Life Ltd) to carefully review our products and their costs. Our priority is to offer sustainable and affordable insurance to all members. This allows us to minimise cost increases, or even decrease the costs, depending on the number of claims paid out in the previous year and several other factors.

 

Changes to insurance

For AustralianSuper members, insurance cover costs are deducted from your super account each month.

From 28 May 2022, 99% of insured members will see some costs decrease, depending on which cover you have. In the past year we had fewer claims for Death, TPD and Income Protection with a benefit payment period up to 2 years. So we’re able to decrease the cost of these cover types.

However, the cost of 2 cover types will increase this year increase due to an increased numbers of claims paid:

  • Income Protection with a benefit payment period up to 5 years, and
  • Income Protection with a benefit payment period up to age 65 years.

 

Good news for insured members

This year, overall on average, members will receive an 11% decrease in the cost of their cover. This reduction equals a total saving to members of almost $90 million.

Group Executive of Member Experience, Shawn Blackmore, says this is a fantastic result for members.  

‘AustralianSuper recognises how important affordable insurance cover is for our members and that for many members buying insurance through AustralianSuper is better value than directly from an insurer.

In 2022, on average, members will receive an 11% decrease in the cost of their cover.

As Australia’s largest fund we use our size and scale to provide the best possible cover for members. Members pay only what it costs to provide their insurance.

 

Find out if you could pay less for cover

A work rating classifies the usual activities of your job into one of 3 categories:

To make sure you are paying the correct costs check your work rating. There are 3 work ratings:

  • Blue Collar
  • White Collar
  • or Professional

Your individual work rating is one of the factors that determine how much you pay for your insurance cover. To help you understand which work rating may apply to the usual activities of your job here’s a table that provides a description of each:

 

AustralianSuper Work Rating table
Blue Collar work rating
(most expensive)		 White Collar work rating
(less expensive)		 Professional work rating
(least expensive)

Blue Collar is our default Work rating.

This work rating will automatically be applied to your insurance cover. It will remain your work cover unless you apply for White Collar of Professional work rating and your application to change your individual work rating is accepted.

A Blue Collar Work rating is suitable if:

  • you spend less than 80% of your job doing clerical or administrative activities in an office-based environment;

and/ or

you’re exposed to unusual workplace hazards (may include working underground, underwater, at heights or in the air).

You can apply for a White Collar work rating if:

  • You spend more than 80% of your job doing clerical or administrative activities in an office-based environment, or
  • You’re a professional using your university qualification in a job that has no unusual work hazards (some examples include working underground, working underwater, working at heights or working in the air).

You can apply for a Professional work rating if:

  • you spend more than 80% of your job doing clerical or administrative activities in an office-based environment, or
  • you’re a professional using your university qualification in a job that has no unusual work hazards (some examples include working underground, working underwater, working at heights or working in the air)

AND

you’re earning more than $100,000 or more a year from your job

AND

you have a university qualification or you have a management role in your company.

Source: AustralianSuper March 2022

If the usual activities of your job match White Collar or Professional, you may be able to pay less for your cover. Check if you’re eligible to apply for a different work rating by using our Work Rating Tool.  

Work Rating Tool

 

Check your insurance

To check if you have insurance cover with AustralianSuper, log into your account or the mobile app and select the insurance tab. You can also see how much you’ve paid for your cover by checking your transaction history.     

Members can also calculate the new cost of their cover using the insurance calculator.

Calculate your insurance cover costs

 

Insurance price changes

 

References

  1. Age limits and conditions apply. Please visit the website for more information australiansuper.com/insurance

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Help and guidance Work Life

This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.

AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. 

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